Competition in high-value ships market is getting fiercer among big 3 shipbuilding nations.
Worldwide newbuilding order shows the bottom in recent two years and yards are looking for offshore facility market at present, market player saying, "M&A or restructuring of yards is needed."
According to Chinese government's recent statistical data, about 40% of Chinese yards had won no new order year to date and overall newbuilding order dropped by 36% to 28.07m dwt during January to August period.
Its outstanding outcome to top in delivery, new order and orderbook last year was mainly due to its massive new order for small size boxship, bulkers, etc.
China's low-margin oriented business has been recently hit hard.
About 1,526 of shipbuilding-related companies in China are in a trouble due to increasing labor cost, yuan appreciation and tightened financing.
Under these difficult circumstances, major yards are groping to enter into high-value ship market. For instance, Yanzijiang Shipbuilding penned four China-first energy-efficient boxships from England, about 30% more efficient with a design by Dutch. Also, private-owned Rongsheng Heavy Industries had a training on LNG-carrier related technology from Gaztransport & Technigaz of France.